ABC and Average Cost in a Service Industry

question 2

Essay

ABC and Average Cost in a Service Industry
For many years the Honey Lake Summer Camp had used the number of campers per week to estimate weekly costs.The summer camp is open for ten weeks during the summer with a different number of campers each week.July is busiest with June and the end of August least busy.Costs from the last week of summer camp in 1998 are used to estimate costs for 1999 for pricing purposes.The following costs occurred during the last week of 1998 and the costs of each cost category are expected to be the same for 1999: Cost per camper:$12,200/50 campers = $244/camper
The Honey Lake Summer Camp expects 75 campers during the second week of July.
Required:
a.What is the expected cost of that week using the average cost?
b.What is the expected cost of that week using ABC?

Appreciate the influence of political events, such as the blacklist and HUAC, on film content and industry practices.

Acknowledge the adaptability of Hollywood in response to legal and economic challenges, including shifts to the international market and changing business practices.

Understand the key films directed by Orson Welles and their historical context within the film industry.

Recognize the impact of Howard Hawks' thematic preoccupations in his filmography.

---

Definitions:

Average Cost Formula

A method used for inventory valuation, determining the cost of goods sold and ending inventory by calculating the weighted average of all purchases and manufacturing costs.

Periodic Inventory System

An accounting system that updates the inventory balance once at the end of the accounting period, using physical counts and purchase records.

Physical Count

The process of manually counting and verifying the amounts of inventory a company physically has in its possession.

Ownership

The legal right to possess, use, and control a tangible or intangible item.